2006/2007 price estimate by production05 as posted
by him on StockHouse
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Tanoose, you're right, just kicking back and waiting out the process.
I hope everyone was able to reach their targeted CMM share totals.
It looks like we're getting close to the restart.
Just a reminder.
1) Right at this second, I would say our base case stats are conservatively worth $3.60 (price-to-cash flow of 20).
That is 97,200 ounces (90K Sigma, 7.2K San Juan).
Based on $550 US gold price and $325 US cash cost.
Of course this view is way conservative
as our current gold price is $651 US (not $550)
and our January cash cost
was $300 US ($325) for Sigma
(we're trending $265 US at San Juan).
We also know that we're going to get some incremental ounces from Lamaque later in the year, and we will also be expanding on our production at San Juan.
I also used the new fully diluted share count of 135M as oppose to the lower outstanding share count.
So, as you can see, we are still quite discounted even when you compare our extremely conservative cash flow only view ($3.60) versus our current share price of $1.49.
2) With projects currently in development, we have the potential of ramping up production to give us a share price entitlement of $10.20 in 2007.
Assumptions:
248,000 ounces,
$550 US gold price (still conservative),
$300 US cash cost (s/b lower with significant San Juan ramp up),
135M FD shares,
price-to-cash flow of 20
Good luck,
Production05
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